Sabica (nil) 08 April 2021

Senior citizen selling their only home

We are senior citizens selling our only home for retirement and living with my daughter and her family. As I am depending on this liquid money I wont be buying any property. Do I have to pay Capital gain tax on sale of my only house? Thanks

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Quick Summary

This discussion addresses whether senior citizens selling their sole home to fund retirement need to pay Capital Gains Tax. While some exemptions might apply for a limited period, generally, capital gains are taxable. The advice suggests consulting a local tax lawyer or chartered accountant to ascertain the exact capital gain and explore options like investing in capital bonds or accounting for property improvements and brokerage fees to potentially reduce the taxable amount.

3 Replies

M.JAYAPAL RAJAN 08 April 2021

You need not pay capital gain tax for two years.After that you have to pay regular taxable income in line with senior citizens category

Sankaranarayanan (Advocate) 08 April 2021

As for as capital gain concern we can not put suggestion without ascertain capital gain tax . What is your property sale consideration and what is your property value when your purchases? So better to seeking advise for a local Tax lawyer or chartered account

k.n.VIJAYAKUMAR 25 April 2021

you cannot avoid Capital gains . If you are a senior or super senior citizen - the taxes may be slightly less , but that is only on the income . Since the Capital gains are treated differently you cannot escape. How ever you can plan, & invest in capital bonds, - but this is also limited to 50 lac, & has locking period.

You can also consut an auditor , & try to reduce the capital gains - u can show / account for repairs, & get them indexed , can deducts for paying brokerage , . also if the property Is on a single name - make a settlement & add your spouse . You may be able to split the capital gains also.